China’s Wanxiang wins bid for A123 assets: reports

SAN FRANCISCO (MarketWatch) — Chinese auto-parts maker Wanxiang Group Inc. won a bid to acquire the assets of bankrupt battery maker A123 Systems Inc., according to media reports Saturday.

A123
US:AONEQ
which had drawn down about $132 million out of $250 million in federal grants it had received before declaring bankruptcy protection, launched its initial public offering in September 2009 at $13.50 a share.

In October, A123 filed for Chapter 11 bankruptcy protection after a financing deal with Wanxiang fell through. At the time, A123 planned to sell its lithium-ion car battery business to Johnson Controls Inc.
JCI, +1.22%Read more on A123's bankruptcy filing.

While the amount of the winning bid wasn't disclosed, Charles Gassenheimer, who helped broker the Wanxiang deal, told the Chicago Tribune the amount was far less than the $465 million Wanxiang had initially agreed to invest in August. The Wall Street Journal reported the bid was between $250 million and $260 million.

Wanxiang reportedly beat out a competing bid from Johnson Controls and Japan’s NEC
6701, +1.73%
Siemens AG
US:SI
had also submitted a qualifying bid at the auction, according to the Journal.

In late November, Wanxiang received approval from China’s National Development and Reform Commission to bid in the auction.

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